Good afternoon Powur Shareholders!
Well, it's been a wild ride since our last update on Wefunder. To put it simply, the company has been growing at exponential speed. The below chart will illustrate revenue growth over the previous 4 quarters.
Revenue for Q1 2020 was $8,333,087, or almost the entire revenue we produced in 2019. To get an even better idea of how quickly the company is growing, Q1 Quarter over Quarter revenue growth from 2019 to 2020 was 1,537%!
In addition to the substantial growth in revenue, the company has rapidly achieved cash flow positivity and a GAAP net profit.
Net profit grew by 439% quarter over quarter, with total Q1 net profit of $629,544. As many of you know who study solar industry business models, most national solar companies struggle to achieve profitability, even as they mature as public companies. We are seeing promising signs early on in our business model that we are producing substantial net profits, and and we believe these numbers will hold true at scale.
In terms of cash flow growth, the business is performing even better.
Cash flow grew by $1,583,227 in Q1, representing 77.1% growth in our cash balance from the previous quarter. We've been able to design a business model in solar that produces a GAAP net profit and generates substantial operating cash to fund the business as it grows. We are quite pleased with both of these indicators as accomplishing a business model like this is tough to do in any industry.
These high level financial metrics are all indicators of the radical transformation that has taken place within our business to recruit and retain vastly more solar consultants with a superior value proposition. We are seeing record new sales, install, and recruiting numbers on a monthly basis, and are working hard to continue the momentum. I believe we are just scratching the surface of what is possible with this model, and will save some of the longer term plans for future shareholder updates.
Given the rapid growth, we are making investments in maturing the companies operational and technology departments, as well as our installation network nationwide. The big challenge ahead of us is to maintain the quality, speed, and service level of our installations while handling significantly more volume. This is tough to do, and many solar companies have dropped the ball before. Right now our team is laser focused to make sure we execute at scale, and deliver the true Amazon Experience to solar.
"Lowest Prices - Best Service". - I believe it is that simple to predict who's going to be the dominant player in residential solar. We are currently positioned extremely well to disrupt the industry and validate that our new business model may be the future of residential solar.
In Conclusion:
We've got big challenges ahead of us. We're quickly growing from a start up into a "scale up", and we've got to be fast in addressing scale issues as they arise and predicting challenges before they happen so we maintain the quality of service we know we are capable of. Rapidly growing a team and solving these kinds of challenges can be tough, but I feel 100% confident our team is going to do it as well as it's ever been done in solar.
We've been preparing for YEARS for this exact moment. We are battle hardened, and driven by a pursuit for genuine greatness and leaving a lasting legacy on planet earth. Sustainable energy is simply too important for the future of mankind, and we must continue to push ourselves to have greater impact than we did the day before.
I only see one path forward... to get bigger. Much bigger. And achieve the vision we set out to create... Accelerating the adoption of sustainable energy worldwide.
I know many investors will start to see some of the revenue numbers Powur is producing and naturally begin to wonder "when am I getting a return?". And that is a great question. The strategy of the company is still the exact same, GO PUBLIC. And go public at the right time.
It is still too early for the company to begin considering going public, as we have to mature about our business model, and make some very strategic business model enhancements to value our business in a different way. I'll give you one little hint, we are starting to make investments to gain a much greater capacity in business intelligence and data science. We see a clear path forward for Powur to exit the "solar contractor" vertical and really become more of a national (and ultimately international) new kind of decentralized clean energy utility.
Imagine if you had all the data on how much energy a home was producing, consuming, what appliances were consuming it, and when. The type of ongoing relationship to generate, optimize, and manage a customers energy over a multi-decade relationship is the new kind of decentralized utility we believe is emerging. We fully intend to be that company, and see a virtually unlimited market opportunity over the coming decades. It's truly huge fellow shareholders.
So trust us, we're in this for the long haul and to produce something with an exit multiple that will make most people's eyes pop out. To accomplish this feat, we will continue to invest in the long term. I wouldn't anticipate an IPO for another 3-5 years, and when it happens, the plan is to go public as the clear market leader for the new business model in solar.
I plan on staying with the company until we mature it as a public entity for however long it takes, until ultimately we are a global decentralized clean energy utility who brought clean energy and abundance to the people of earth. If that is a vision that inspires you, stay tuned! Because we are just getting started.
Thanks for being part of our community at Powur. Thanks for being an investor who helped to make this dream come true. We don't take it lightly, and plan on making you proud.
To the top,
Jonathan Budd
Powur CEO / Founder